Selling your business

Posted on November 1st, by editor in Caring Times. No Comments

Tax specialist Barry Laurie offers some practical tips on how to keep taxes down when selling your business. Had enough? Want out? Once you’ve decided to sell up you’ll want to know what, if anything, you’ll be left with after paying off the bank. Tax is often overlooked. It is not just capital gains tax; there are other taxes. It is worth having a detailed report prepared, estimating the tax and giving proposals to cut the final bill. Capital gains tax will arise on the difference between the selling price and the costs, including the original purchase price and improvements along the way. There are various complex reliefs and exemptions available to reduce the gain. Any remaining gain is added to your income for the year of sale. This generally means tax at 40% on the gain. For those over 50 there is the possibility of retirement relief which will wipe out, or greatly reduce, the final bill. But this relief is being phased out and will disappear after April 2003. A more generous taper relief is likely to b

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